Shares of Academy Sports + Outdoors Inc. were falling at the start of Tuesday’s trading session after the outdoor sports retailer posted fourth quarter earnings that missed Wall Street’s estimates.

The shares were down 9.4 percent to $51.19 after the trading session opened Tuesday morning.

For the fourth quarter ended Jan. 31, net income inched up 0.07 percent to $133.7 million, or $1.98 a diluted share, from $133.6 million, or $1.89, in the same year-ago quarter. An an adjusted basis, diluted earnings per share (EPS) was $1.97. Net sales rose nearly 2.5 percent to $1.72 billion from $1.68 billion. The company said fourth quarter comparable sales slipped 1.6 percent.

Wall Street was expecting adjusted diluted EPS of $2.05 on revenue of $1.76 billion.

For the full year, net income fell 9.9 percent to $376.8 million, or $5.54 a diluted share, from $418.4 million, or $5.73, in 2024. Net sales rose 2.0 percent to $6.05 billion from $5.93 billion in the same year-ago period.

“This past year marked an inflection point for Academy as we continued to gain market share and moved back to topline growth. During 2025, we put in place many foundational building blocks that helped drive sales and will continue to pay dividends in 2026 and beyond,” Steve Lawrence, Academy’s CEO, said. “We are accelerating the digital transformation of our business and building an omni-channel experience that will deepen engagement with our customers through data-driven personalization.”

Lawrence noted that some of the “macro-economic pressures that the customer faced in the back half of the year will continue into 2026,” but added that the company is “optimistic” that the strategies in place should enable Academy to return to “consistent comp sales growth.”

The retailer opened five new stores in the quarter, bringing the total to 24 new doors opened in 2025 and ending the year with 322 locations. It plans to open between 20 to 25 new stores in 2026.

Academy’s chief financial officer Carl Ford said the company expects to see tailwinds from internal initiatives that include growth from new stores and omni-channel, as well as from external occasions such as international sporting events. “We are also mindful that the American consumer is still under financial pressure that we expect to persist throughout 2026,” Ford said.

For fiscal 2026, ending Jan. 30, 2027, Academy guided net income to between $380 million to $415 million, or $5.65 to $6.15 a diluted share, on a net sales forecast ranging from $6.18 billion to $6.36 billion. Adjusted diluted EPS was estimated at between $6.10 at the low end to $6.60 at the high end.

Wall Street projected of $6.52 in adjusted diluted EPS, but the company guidance on revenue was below analysts’ consensus estimate of $6.46 billion for the year.

In 2025, Academy expanded its offerings that included the Jordan and Converse brands, and expanded collaborations, such as its third with Whataburger that include exclusive co-branded Hey Dude shoe in time for football season.